The US House of Representatives passed sweeping legislation on Thursday to subsidize the domestic semiconductor industry as it competes with Chinese and other foreign manufacturers, a victory for President Joe Biden and his fellow Democrats hoping to keep their slim majority in Congress in November midterm elections, reports Reuters.
The final vote was 243 to 187, with one Democrat—Representative Sara Jacobs—voting present. Twenty-four Republicans joined 218 Democrats in backing the measure. Passage sends the bill to the White House, where Biden is expected to sign it into law as soon as early next week.
The Senate passed the “Chips and Science” act with bipartisan support on Wednesday, after more than a year of effort. A rare major foray into US industrial policy, the bill provides about $52 billion in government subsidies for US production of semiconductors used in everything from automobiles and high-tech weaponry to electronic devices and video games. It also includes an investment tax credit for chip plants estimated to be worth $24 billion.